The True Value of Gold in Singapore
Gold is and has been a symbol of prosperity for many years. This rare-earth metal has also managed to retain its value through time. To date, gold continues to be one of the largest assets in the world.
Over the years, Singapore has seen tremendous growth in its economy. Since 1990, the country has been experiencing exponential growth to become the 4th highest GDP globally.
In November 2021 the Monetary authority of Singapore announced that for the first time in decades, Singapore has added to its gold reserves increasing its holdings by 20% which was over 26 tons of gold bringing its total gold holdings to 154 tons in total.
The gold the MAS bought was 999.9 LBMA God Delivery bars that are the most liquid in the market amongst investment banks and central banks alike.
Gold is part of the wealth accumulation in Singapore. Therefore, it only makes sense to be interested in the precious metal in a rich country like Singapore.
How Much is Gold Worth in Singapore?
How to Calculate 1kg of Gold in Singapore Dollars?
What about other Gold purity types?
Exchange rates for Gold in Singapore today
Gold prices depend on the amount you are getting. Like the rest of the world, you can get gold in different measures in Singapore. You can trade an ounce, a gram, or a kilo of gold. Alternatively, you can buy a tola of gold, and for the most common, karats.
The value of gold will also depend on the purity of the metal you are getting.
There are different standards of gold, but today we look at 916 and 999 gold in Singapore.
If you want to invest in some gold, you must have some insight into the type of gold you are paying for. It is a common mistake among novices to assume that when they trade at the gold rate in Singapore, they get pure gold.
However, this is not the case. You may end up trading 916 gold at the 999.9 gold price in Singapore.
So, how do the two above-mentioned gold standards differ?
Gold contains some bit of silver in it. So, when you want to trade some 916 gold, you are only getting 91.6% pure gold. The remaining 8.4% is silver.
On the other hand, 999.9 gold has a 99.99% purity. This type of gold is the purest that can exist in its most refined form for purchase by the public. It is therefore rare in commercial applications such as making Jewellery. 22-karat gold, or 916 gold, on the other hand, is commercially available for making Jewellery and trading. 999.9 Gold is also much softer than 9.16 as the additional elements added act as a strengthening agent.
Does it matter what gold I buy?
It’s up to you whether you want to acquire pure gold or gold coins its really about your personal preference. Is it possible to purchase gold bars or gold coins on or at the gold spot price? When purchasing your gold the Gold dealer will give you a price at which the gold may be purchased based on or at the gold spot price, plus any applicable fees, premiums or charges.
Should you own physical gold?
Physical gold is one of the most successful long-term asset preservation strategies. It is suitable for your successors since it will survive any future currency, making it a fantastic investment. Unlike paper assets, actual gold is not subject to the risks connected with them. It cannot be hacked which a number of gold backed crypto products have had happen over time.
Many people opt for a Gold ETF which has its pros and cons, the pro is it’s a liquid asset and cheap entry to market but for a long term investment its not the best option as any of the backing entities of the ETF can fail in the financial markets which leaves your portfolio at Risk! Take Bear Stearns and Lehman Brothers for example, it took years to settle their investments, so go with physical gold if you are looking at any long-term gold investment.
Is it better to buy gold coins or bars?
Gold coins are recognised to have more emotional value than gold bars, and this has been the case throughout history. If you want to invest in something that has more historical worth than gold bars, gold coins may be a better option for you than gold bars. Gold coins, once again, have a higher collectable value than gold bars.
What size of gold is best to buy?
It’s recommended to get the 400 ounce gold bars and the 1 kilogram gold bars because you’ll obtain more gold ounces as premiums are lower at the bigger volumes. This is why the 400-ounce bars are bought by major investors, Central Banks (like the MAS), governments, and Exchange Traded Funds. Most people won’t but a 400oz gold bar but for many a 1kg Gold bar offers the best investment opportunity.
What form of gold is the cheapest to buy?
Bulk purchases of gold bars often result in a smaller premium, resulting in a decrease in price. Bars of gold may be. 99.9 percent (999) pure gold. If you desire a large quantity of gold and are mainly interested in investing for savings, gold bars might be an excellent choice.
Is it worth buying small amounts of gold?
It is advisable to buy in little amounts over time. When gold prices rise, the value of gold-related stocks rises with them. While this may provide unsatisfactory results in the near term, it does not diminish the long-term advantages of using gold to diversify your portfolio.
There are some Gold dealer out there that allow you to pool gold on an unallocated basis and then once you have accumulated enough gold you can take delivery of a larger gold bar format, this is a worthwhile exercise for anyone that wants to add smaller amounts of gold to their portfolio over time.
There are also other electronic gold savings accounts from banks and new technology players but you are giving away a big spread when you do it that way in most cases and also run the risk of the company disappearing with all your savings, Genneva Gold or Suisse International are two such cases where hundreds of people were duped into Gold Investment schemes!
Should I take my gold home to store it safely?
It’s always advisable to not take it home and keep it under your bed as it has then been removed from the chain of integrity known widely within the gold system. You should instead open up a gold vault and have the gold dealer transfer it to the vault where:
- it will be safer
- it will be insured against loss
- b) it remains in the chain of integrity
How to Calculate the Percentage of Pure Gold Content
The simplest way to think about this is as a fraction; you’re calculating parts per hundred. In this case, 24 is equivalent to 100 since 24k gold is the finest kind of gold available for Jewellery. Calculate your percentage by taking the item’s carat weight, dividing it by 24, and then taking the first two numbers after the decimal point as your result.
Gold Prices in Singapore Today
The exchange rates for gold in Singapore do not remain constant. However, if you want gold, whether buying or selling, there are averages that cut across the island.
One gram of 24-karat (999 gold) goes for SGD 84. On the other hand, the 916 gold price per gram in Singapore is SGD.77 based on todays rates as a reference point.
Factors affecting the prices of gold in Singapore
Gold has long been a valuable asset you can own. It has managed to resist the effects of inflation and any political and economic uncertainty.
However, despite remaining to be a highly valued rare earth metal, a few factors would influence the prices of gold. Some of these factors include:
Gold is involved in many areas. Central banks use gold as a currency reserve, while merchants use gold to make beautiful Jewellery. Gold exchange-traded funds also require gold for operation. The higher the demand for gold, the higher the prices.
2. Central bank reserves
Gold has maintained its influence in the monetary policies of many countries, Singapore being one of them. So, whenever the Monetary Authority of Singapore is buying gold to add to its reserve, the prices surge.
3. Geopolitical factors
When a country is experiencing negative economic news, most investors look for an asset that can hold value despite the uncertain political condition. Therefore, they resort to gold, thus increasing the demand and consequently the prices.
4. Currency inflation
When the Singapore Dollar drops in value, the prices of gold in Singapore rise, and vice versa.
When should you invest in gold?
Recent trends in the gold market today show that gold prices experience mild fluctuations in price. In a single day, the costs can drop from SGD.85 to SGD.83. This precious metal holds a constant high price, but sometimes the value suffers a drop. So, when is the best time for you to sell or invest in gold in Singapore?
On taking a closer look at the gold prices in Singapore, you will notice that most fluctuations occur at the beginning of the year. So, in January and February, 916 and 999 gold prices in Singapore tend to increase.
Later in the year, after summer and in the early autumn months, the prices of gold start to rise again.
With this analysis, you can conclude that it is the cheapest and most profitable to buy your gold at the beginning of January. March also offers a good bargain when looking for the lowest gold prices.
When should you Sell your Gold?
When you want to sell, it is more profitable to sell at peak demand. That is when the prices rise and stay relatively constant before dropping at the beginning of the following year.
Gold is precious and has remained stable, even in the face of all the inflation in the world. Therefore, investing in such a long-lasting asset is a wise choice. Gold prices in Singapore will vary depending on the purity you want and the amount.
There are times best suitable for buying and others for selling. Nevertheless, if your goal is to invest in precious metals, then the gold prices in Singapore should be on your radar so monitor daily.